Market in time correction mode; Defense -Income, Cement Outlook Strong, it stands for AI Challenge: Jyotivardhan Jaipuria

Indian stock markets remain accessible this year, with investors struggling with high valuations, global uncertainties and muted profit growth. According to Jyotivardhan Jaipuria, founder and MD, Valentis advisers, the market is in a “time correction” phase after the sharp post-known rally, and the next major Upmove will depend on profit growth instead of re-appreciating further appreciation.

Market in a breathing phase

The current silence explained, Jaipuria said: “After a marathon rally, markets need a breathing break. Valuation was expensive and instead of a steep price correction we see time correction, which is healthier.”

He added that although the macro -economic background of India is strong, the growth of the business profit has been delayed. “For 20 years, India had strong micros but weak macros. Now the macros are great, but the income is fixed. Without profit growth, valuations cannot only float higher,” he said.

Sector themes: cement and defense stand out

Looking at sector options, be Jaipuria on cement as a potential outperformer. “The sector has seen consolidation in the last 18 months. With the use of use, the price force will return. That will stimulate profit growth,” he said.

In defense, Jaipuria called it a “structural story” supported by government’s pushing for indigenous people. Strong order books and steady profitability make defense shares attractive for long -term investors.

Fed rate reductions and rates

Markets also look at the upcoming American Federal Reserve meeting, where a reduction of 50 basis points is expected. Jaipuria said that FED cuts usually support emerging markets such as India. “In five of the last seven Fed rate Cycli, the global markets were higher a year later,” he noticed. However, there are geopolitical risks and tariff uncertainty. “India rather came close to a trade agreement, but until an agreement has been signed, the rates on sentiment will weigh. The market has adjusted, but removing extra rates would be clearly positive,” he said.

IT sector: short-term lighting, long-term care

Jaipuria maintained a careful picture on Indian IT stocks. “We are underweight because the American macro-off wind, anti-outsourcing sentiment and structural changes of AI are long-term challenges. AI can reduce the needs of manpower, limiting the growth for Indian IT companies,” he said.

Although Cash-Rich could see IT companies buy in the short term, Jaipuria warned that sustainable growth can remain elusive. “For a three -year display, it is not a sector that we would be overweight,” he added.

According to Jaipuria, investors must concentrate on sectors with visible profit growth, such as cement and defense, while he remains careful. “The next part of marketing will come from income, no ratings,” he concluded.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)